Hong Kong Stocks Soar as Technology and Internet Stocks Lead the Charge
The Hang Seng Technology Index saw a significant surge of more than 3% in response to the collective rise of technology and internet stocks in Hong Kong. This growth comes on the heels of a strong overnight performance in both U.S. stocks and Chinese concept stocks.
Alibaba-SW (09988) led the charge with a 5.91% increase to HK$71.65, followed closely by Kuaishou-W (01024) up 5.55% to HK$44.65, Baidu Group-SW (09988) rising 5.18% to HK$103.6, and Meituan- W (03690) climbing 4.45% to HK$69.25.
This positive movement can be attributed partially to the strong rebound witnessed on January 23 in U.S. stocks and Chinese concept stocks. The Nasdaq Golden Dragon China Index surged nearly 5%, with popular stocks like Alibaba, Bilibili, and NetEase seeing significant gains.
Analysts from CITIC Securities (Hong Kong) highlighted the impact of overseas interest rate cuts and active capital outflows on Hong Kong stocks, emphasizing the significant liquidity discount currently at play. Guotai Junan echoed these sentiments, indicating that high-performance Internet leaders in the Hong Kong market are worthy of gradual deployment.
JPMorgan Chase issued a report focused on mainland technology and Internet stocks, highlighting themes for the year ahead, such as the increasing influence of mainland cross-border e-commerce in the international market and the continued transformation of the mainland’s e-commerce market portfolio.
Looking forward, market experts expect investment income to continue driving stock selection strategies and provide good risk returns. With an eye on themes like the monetization of generative AI and shareholder investment returns, it seems that the technology and internet sectors in Hong Kong and beyond are poised for significant growth in the future.